(1) No person shall be eligible for admission as member of a cooperative society, if he -
(a) has applied to be adjudicated as an insolvent or is an undischarged insolvent; or
(b) is adjudged by a court of competent jurisdiction to be of unsound mind or;
(c) has been sentenced for any offence, involving moral turpitude; such sentence not having been reversed or the offence pardoned, and a period of five years has not elapsed from the date of expiry of the sentences:
Provided that the provision of clause (c) of sub-rule (1) shall not apply to a person sentenced for any offence, during the period he is undergoing the sentence in the Jail and seeking admission as a member of a society formed for the betterment of the .prisoners and meant exclusively for the inmates of the Jail, but such person shall cease to be a member of such society as soon as he is released from the Jail:
Provided further that a convict can be admitted as a member of a co-operative society even after his release from Jail if his good conduct is certified by a Jail authority not below the rank of a Superintendent of Jail.
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(2) If a member becomes subject to any of the disqualifications specified in sub-rule (1), he shall be deemed to have ceased to be a member from the date of his incurring the disqualification. If any dispute arises, the aggrieved party may apply to the Registrar, whose decision in the matter shall be final.